[aggies21]

I realize this is question is directed to a very specific group of people, but I am confused. I was under the assumption that guaranteed payments decrease a partner’s basis, but on question #29, in the Wiley Book the guaranteed payment is not taken into account when calculating basis. Any help on this?

AUD - 80
FAR - 78
BEC - 78
REG - 72 (11/30)

[WhyMe23]

It's basically a salary so it is deductible from the partnership and taxable as ordinary income to the recipient. No affect on basis, only non-guaranteed payments such as profit sharing would affect basis.

B - 85 (5/31/11)
A - 93 (7/1/11)
R - 87 (7/29/11)
F - 77 (8/31/11)

[Author]

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